Replies to post #111559 on Value Microcaps Motherboard

[gilead23]

Peeker SCOM contracts

Its not clear what the margins are here however profits would likely be enormous even taking a decent margin haircut from where they are at now.

I could start rattling off dozens of companies pulling decent margins from government business. PYT.V PSP.V are two canadians that ring a bell off the top of my head. PYT.V's margins are roughly 70% selling to the feds. Also ISNS, DGLY, TCCO and others.

Its reasonable to be cautious on margins but even if they were 25% which is a huge discount to today's margins they would be adding another 1.8 million to gross quarterly. Add a 150k extra in SGA and tax that at 35% and you are still talking about an extra .08 in quarterly EPS.

Those are pretty conservative numbers so I'll disagree with you and suggest that the profits produced relatively speaking should be blockbuster in nature.